About a month ago, I took a closer look at SoFi Technologies (NASDAQ:SOFI) stock. As a fan of fintech and companies finding more creative ways to serve customers, I’ve always had a soft spot for SOFI and thought the company would do pretty well after it went public.

In that piece, I voiced some optimism, but also cast a warning — if SOFI drops to $5 per share, it’s a sign of significant trouble and investors should be legitimately concerned.

Unfortunately, we’re pretty much at that level now.

SOFI is trading just over penny stock territory, holding fast at this writing at around $5.50. A steep drop of more than 20% over the last month is pushing SoFi Technologies into dangerous territory.

So far on the year, SOFI is down nearly 65%.

Part of the problem for SoFi is that it’s hurt by the run on tech-related growth stocks. SOFI stock could be bought for $25 per share last summer when it went public, but tech stocks are down now across the board.

And SoFi is also being hurt by the extension of the federal student loan payment moratorium for another four months to Aug. 31. Without student loan payments coming in, SoFi is continuing to float the expense of those loans without any income coming in. And I wouldn’t be surprised if the moratorium is extended again.

First-quarter earnings on May 10 were accidentally released three hours early because of human error, leading to a drop in SOFI shares. But the report itself wasn’t too bad. Revenue of $322 million beat analysts’ expectations of $286 million. The loss per share was 14 cents, which was a penny better than the Street expected.

Guidance for the second quarter was a disappointment, with a range of $330 million to $340 million. Analysts were expecting, on average, guidance of $343.7 million.

Credit Suisse dropped its price target for SOFI stock from $15.50 to $9.50. And Citi dropped its target from $17 to $11.

At this point, a gain back to $10 would be a huge jump of nearly 100%. I think investors should be a little more skeptical about SOFI at this point.

On the date of publication, Patrick Sanders did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.